"(Reuters) - The United States said on Sunday it would give Egypt $190 million in budget aid after Egyptian President Mohamed Mursi promised to take the painful economic reforms needed to secure an IMF loan.
U.S. Secretary of State John Kerry announced the funding after meeting Mursi and acknowledged Egypt's "extreme needs" as the Islamist government struggles with a slide in currency reserves to worryingly low levels and a soaring budget deficit.
Cairo says it wants to reopen talks with the International Monetary Fund on a $4.8 billion loan which was agreed in principle last November but suspended at Cairo's request due to violent street protests the following month.........
The government plans to continue subsidized fuel prices for the most needy, under a rationing system to be implemented in July. However, Egyptians excluded from this scheme would face a jump in prices that could provoke public fury if implemented.
The official, who is part of the cabinet's economic team, told Reuters the increases would be put to an IMF team once it arrives in Cairo to negotiate the loan. "The new prices are included in the economic reform program that will be presented to the IMF mission," said the official, who requested anonymity....."
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